Question

Why do corporate strategies of some companies have dissipated instead of created shareholder value? Please provide with examples.

Subject: Microeconomics of Competitiveness

Answer 1

Corporate strategies dissipating value creation for shareholder means, Company also focusing on core issue of business to withstand the competition of the market.

Business environment impacts the overall productivity of the business. So the corporate strategy should be made after carefully considering all the factors which may positively or negatively impact the business. Company like Hindustan Lever Ltd. had adopted the merging strategy to expand the business and ultimately increasing revenue for every one

.Never the less it help in expansion, increase in sales, increase in profit and also increase in shareholders value.